The European stock markets closed mostly lower in Tuesday trading amid surging inflation and escalated fighting in the Middle East.

The Stoxx Europe fell 0.7%, Germany's DAX dropped 1.3%, the FTSE 100 lost 0.5%, France's CAC declined %, and the Swiss Market Index gained 0.1%.

Euro area annual inflation is expected to accelerate to 3.3% in August from 2.9% in July, Eurostat, the statistical office of the European Union, reported Tuesday. Eurostat said energy is expected to have the highest annual rate during the month at 14.3%, compared with 10.3% in July.

Eurostat also reported Tuesday that the euro area seasonally adjusted unemployment rate was 6.4%, in July, unchanged from June and up from 6.3% a year earlier25. The EU unemployment rate was 6.1% in July 2026, also stable compared with June 2026 and up from 6.0% in July 2025. These figures are published by Eurostat, the statistical office of the European Union.

In corporate news, Barclays, HSBC, and Starling Bank have stepped up legal action against companies that defaulted on taxpayer-backed Covid-era loans as the UK government pressures lenders to recover losses, the Financial Times reported Tuesday.

The banks have filed nearly 70 winding-up petitions since June against Bounce Back Loan recipients, many of which appear to have ceased trading or filed dormant accounts, according to the report. The UK government has urged lenders to pursue dormant borrowers to recover losses from the scheme, estimated at 2.8 billion pounds, the report added.

A Barclays spokesperson told MT Newswires that the bank is committed to recovering Bounce Back Loan liabilities where appropriate and may pursue various recovery options, including legal action where necessary.

HSBC did not immediately respond to MT Newswires' request for comment.

Shares of Barclays and HSBC fell 2.3% and 0.1% respectively in London.

Eni is working with Venezuelan authorities to help revive the country's energy sector, a company spokesperson said in an email to MT Newswires on Monday.

"We are working with the Venezuelan counterparties and any other authorities involved to support the revitalization of the country's energy sector," the spokesperson said.

The spokesperson said the company was not yet in a position to comment on the next steps and would provide further details once plans are finalized.

Shares of the Italian oil and gas company rose 1.4% in Milan.

AstraZeneca said early Tuesday that Tagrisso plus Orpathys in a phase 3 trial showed a "statistically significant and highly clinically meaningful improvement" in progression-free survival versus tagrisso alone in a trial of newly diagnosed lung cancer patients.

The SANOVO Phase 3 trial included 326 patients in China who had not previously been treated for advanced lung cancer with specific genetic changes, according to AstraZeneca.

The results from the trial reinforce tagrisso as the backbone therapy across epidermal growth factor receptor-mutated lung cancer, the company said.

Shares of AstraZeneca were flat in London.

Novartis said Tuesday that phase 3 trials of remibrutinib showed significantly reduced annualized relapse rates compared with teriflunomide in adults with relapsing multiple sclerosis.

The trials met their primary endpoints and showed that remibrutinib was superior to teriflunomide on all key secondary measures.

A preplanned combined analysis also showed a positive trend in three month confirmed disability progression and nominally significant results for six month confirmed disability progression, Novartis said.

Remibrutinib also demonstrated a favorable safety profile with no liver safety signal, the company said.

Shares of the Swiss pharmaceutical company surged more than 6% in Zurich.

GSK plans to advance its mRNA seasonal influenza vaccine candidate to a phase 3 efficacy trial after the vaccine showed higher immune responses in a clinical study than licensed standard dose and high dose flu vaccines, the company said Tuesday.

GSK said it plans to begin the phase 3 trial in September.

The vaccine is designed to target both haemagglutinin and neuraminidase, two surface antigens involved in influenza virus binding and spread, it said.

Shares of the British pharmaceutical company gained 1.2% in London.

Stellantis will suspend production at its Mirafiori factory in Turin, Italy, between Sept. 2 and Sept. 4, several media outlets reported Tuesday, citing statements from the company and the FIOM trade union.

The company attributed the stoppage to a shortage of engine components for hybrid vehicles, according to the news outlets. The trade union blamed it on low demand for the Fiat 500 city car manufactured at the facility, Reuters reported.

Stellantis and FIOM did not immediately respond to MT Newswires' requests for comment.

Shares of the automaker dropped more than 3% in Paris.